Asian Paints Shares in Focus Q4 FY25 Net Profit Falls 45% to ₹692 Crore

Asian Paints, India’s leading decorative paint manufacturer, reported a 45% year-on-year drop in its consolidated net profit for Q4 FY25, posting ₹692 crore. The results fell short of market expectations, which had projected a more modest decline. The company also announced a dividend of ₹20.55 per share.

Asian Paints Limited share price was trading at ₹2,311.80, up by ₹9.20 or 0.40% at 12:35 PM on the NSE from the previous close of ₹2,302.60. The stock opened lower at ₹2,246.60 and touched an intraday high of ₹2,331.80, with a low of ₹2,245.

Q4 FY25 Profit Misses Estimates Due to Exceptional Items

Asian Paints’ Q4 FY25 performance was weighed down by one-time losses totalling nearly ₹183 crore. These included:

• ₹83.7 crore loss from the divestment of its Indonesian business.
• ₹77.8 crore in impairment on goodwill for Obgenix Software (White Teak).
• ₹21.5 crore impairment linked to Causeway Paints in Sri Lanka.

Revenue Declines as Demand Stays Muted

Revenue for the January–March quarter came in at ₹8,359 crore, down 4.3% year-on-year, and lower than the ₹8,619 crore estimate. The company attributed this to:

• Soft consumer sentiment
• Downtrading behaviour in key markets
• Rising competitive pressure

The core decorative paints segment showed only 1.8% volume growth, while revenue from this unit dropped by 5.2%. The company said demand remained subdued throughout the quarter.

Dividend Declared Despite Earnings Dip

Despite weaker financials, Asian Paints announced a ₹20.55 per share dividend for its shareholders. This reflects its continued focus on shareholder returns, though margins and expansion strategies may face increased scrutiny going forward. The company has not provided detailed forward guidance but acknowledged near-term operational challenges.

Read More: Canara Bank Q4 FY25 Profit Surges 33%, Declares 200% Dividend Amid Robust Credit Growth.

Conclusion

Asian Paints' Q4 results highlight the pressures of volatile demand and international business adjustments. While exceptional losses weighed on earnings, the modest volume growth in its core decorative segment offers some support. Market response may hinge on management’s strategy to navigate pricing pressures and revive growth momentum.

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